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Mumbai, Oct 13 (UNI) Standard&Poor's Ratings Services today assigned its 'BB+' senior unsecured long-term foreign currency debt rating to the Export-Import Bank of India(India EXIM)'s proposed 20 billion yen second series samurai bond due 2011.

The five-year bond marks India EXIM's second foray into the Japanese capital market, after its successful maiden launch of a 23 billion yen samurai bond earlier this year in February, said a S&P press release.

The issuer credit ratings on India EXIM, which are identical to the sovereign, reflect its importance as a public policy bank. The principal source of risk for India EXIM relates to its sovereign host and particularly the persistent high public sector deficits of the government of India (BB+/Positive/B).

As a government agency, India EXIM is exposed to this risk via the consequent impairment of the government's fiscal flexibility, which constrains its capacity to extend capital support or assistance to the bank in case of financial distress.

The ratings also incorporate government ownership of and support for India EXIM, and reflect the bank's stand-alone credit features of a record of profitability and solid capitalization. Established by an Act of Parliament in 1981, India EXIM's designated mandate is broadly defined as creating export capability.

As such, the bank's role includes trade finance, advisory services, and promotional programs.

UNI SN PM SKB1612